Ernst and Young appointed as Scots vehicle hire firm collapses

Colin Dempster

Ernst and Young has been called in as administrators at Airdrie-based TOM Vehicle Rental, which has collapsed with the loss of 428 posts.

A total of 86 members of staff will be kept on at their HQ for four weeks to assist the administrators before being let go.

Ernst and Young said “challenging trading conditions in recent months” resulted in the company’s collapse.



The company’s other Scottish bases are Aberdeen, Broxburn, Dundee and Nairn, with another five in England.

An EY spokesman said: “Unfortunately, no suitable interested parties emerged from the sale process due to the scale of the losses and the investment required to turn the business around.

“Due to the Group’s lack of liquidity and increasing pressure from creditors, the directors had no option but to seek the appointment of administrators.”

TOM provides long-term rentals of vans, trucks, trailers and cars as well as operating franchised dealerships under the Mercedes Benz and Citroen brands.

A total of 21 posts associated with a third subsidiary, Alistair Fleming Limited based in Kilmarnock, will be transferred to a new company.

Joint administrator Colin Dempster added: “The Group has incurred operational difficulties and associated liquidity problems in recent years that reflect low utilisation of their rental vehicles, as a result of a competitive market, and changing customer preferences.

“Despite the best efforts to save the Group, it could not continue to operate as a going concern and Administrators were appointed.

“It is with regret that 342 people have been made redundant.

“Our specialist team will work with those affected to help them claim outstanding wages and other payments due from the redundancy payments office.”

Share icon
Share this article: